Part 43 Interpleader proceedings
(cf SCR Part 56, rule 1)
In this Part:claimant means a person by whom a stakeholder or the Sheriff is being sued, or expects to be sued, in proceedings before a court.
disputed property means any debt or other personal property in respect of which a stakeholder or the Sheriff is being sued, or expects to be sued, by two or more persons in proceedings before a court.
execution creditor means a person on whose behalf a writ of execution is issued.
notice of admission means a notice referred to in rule 43.3 (4).
notice of claim means a notice of claim referred to in rule 43.3 (1).
stakeholder means a person (other than the Sheriff) who is under a liability in respect of a debt or other personal property.
Division 2 Stakeholder’s interpleader
43.2 Court may grant interpleader on application by stakeholder
(cf SCR Part 56, rules 2, 3 and 4; Act No 9 1973, section 115; DCR Part 42, rule 2; Act No 11 1970, sections 65 and 67)
(1) If, in relation to disputed property, a stakeholder is sued, or expects to be sued, in any court by two or more claimants, the court may, on application by the stakeholder, grant relief by way of interpleader.(2) Such an application is to be made:(a) if, in proceedings in the court, the stakeholder has been sued by a claimant in respect of the disputed property, by motion in the proceedings, or(b) in any other case, by separate proceedings in the court, joining each claimant as a defendant.(3) With the application must be filed an affidavit to the effect that the applicant:(a) claims no interest in the subject-matter in dispute other than for charges or costs, and(b) is not in collusion with any claimant, and(c) is willing to pay or transfer the subject-matter in dispute into court or, if the court so requires, to give security to the value of the subject-matter to the satisfaction of the court.(4) A stakeholder applying under subrule (2) (a) must serve notice of motion:(a) on each party to the proceedings who claims an interest in the disputed property, and(b) on each claimant who is not a party to the proceedings.(5) In relation to a claimant referred to in subrule (4) (b), the notice of motion must be served personally.
Division 3 Sheriff’s interpleader
43.3 Notice of claim by claimant
(cf SCR Part 56, rule 5; Act No 9 1973, section 116; Act No 11 1970, sections 65 and 66)
(1) If the Sheriff takes or intends to take possession of any disputed property under a writ of execution, a claimant in respect of the property, or the proceeds of sale or value of the property, may give notice of his or her claim to the Sheriff.(2) A notice of claim:(a) must specify the claim, and(b) must state the claimant’s name and residential address, and(c) must state the claimant’s address for service, and(d) must be accompanied by a copy of the notice.(3) On receiving a notice of claim, the Sheriff must serve the notice on the execution creditor.(4) The execution creditor may serve on the Sheriff a notice to the effect that the execution creditor admits the claim set out in a notice of claim.
43.4 Sheriff may apply for claimant’s proceedings to be restrained or stayed
(cf SCR Part 56, rules 5 and 6; Act No 9 1973, section 116; Act No 11 1970, section 67)
(1) This rule applies if a claimant does not give a notice of claim within a reasonable time after becoming aware that the Sheriff has taken or intends to take possession of the disputed property.(2) On application by the Sheriff, the court may restrain the claimant from commencing or continuing proceedings against the Sheriff in respect of anything done, or omitted to be done, by the Sheriff in execution of any writ of execution after the time when the claimant might reasonably have given a notice of claim.(3) The Sheriff may apply for an order under this rule:(a) if proceedings referred to in subrule (2) have been commenced against the Sheriff in the court, by motion in those proceedings, or(b) in any other case, by motion in the proceedings in which the writ of execution was issued.(4) Notice of an application under this rule must be served personally on the claimant.
(cf SCR Part 56, rule 7; DCR Part 42, rule 1)
(1) This rule applies if an execution creditor serves a notice of admission on the Sheriff with respect to any disputed property.(2) On receiving such a notice, the Sheriff must withdraw from possession of the disputed property.(3) On the application of the Sheriff, the court may make an order restraining the claimant from commencing or continuing proceedings in any court against the Sheriff in respect of anything done, or omitted to be done, by the Sheriff in execution of the writ of execution in relation to the disputed property.(4) The Sheriff may apply for an order under this rule:(a) if proceedings referred to in subrule (3) have been commenced against the Sheriff in the court, by motion in those proceedings, or(b) in any other case, by motion in the proceedings in which the writ of execution was issued.(5) Notice of an application under this rule must be served personally on the claimant.
(cf SCR Part 56, rule 8; LCR Part 32, rules 2 and 3)
(1) If an execution creditor on whom a notice of claim is served does not, within 4 days after service of the notice, serve a notice of admission on the Sheriff, and the claim is not withdrawn, the court may make an order granting relief by way of interpleader.(2) The Sheriff may apply for such an order by motion in the proceedings in which the writ of execution was issued.(3) Notice of an application under this rule must be served:(a) on each party to the proceedings who claims an interest in the disputed property, and(b) on each claimant who is not a party to the proceedings.(4) Service on a claimant referred to in subrule (3) (b) must be effected personally.
(cf SCR Part 56, rule 9; DCR Part 42, rule 4)
(1) On application under Division 2 or 3 for relief by way of interpleader, the court may make such orders and directions as it thinks fit for the hearing and determination of all matters in dispute.(2) Without limiting subrule (1), the court may do any of the following:(a) if proceedings in the court are pending in which the applicant is sued for or in respect of any of the disputed property, it may order that any claimant be added as a defendant in those proceedings in addition to or in substitution for the applicant, or order that those proceedings be stayed or dismissed,(b) if proceedings in any other court are pending in which the applicant is sued for or in respect of any of the disputed property, it may order that further continuance of those proceedings be stayed,(c) it may order the applicant to pay or transfer any or all of the disputed property into court or otherwise to dispose of any or all of the disputed property,(d) if a claimant claims to be entitled by way of security for debt to any or all of the disputed property, it may make orders for the sale of any or all of the disputed property and for the application of the proceeds of sale,(e) on request by any party, it may summarily determine any or all questions of fact or law in which the requesting party is interested arising on the application,(f) it may make orders for the settlement and trial of questions,(g) it may make such other order, or give such other judgment, as the nature of the case requires.(3) A stay granted under subrule (2) (b) may be revoked by the court by which it was granted or by the court in which the stayed proceedings are pending.
(cf SCR Part 56, rule 10; DCR Part 42, rule 5; Act No 11 1970, section 67)
(1) If a claimant:(a) has been given due notice of the hearing of an application for relief by way of interpleader and does not appear at the hearing, or(b) does not comply with an order made in the proceedings on such an application,the court may order that the claimant, and those claiming under the claimant, be barred from prosecuting the claim against the applicant and those claiming under the applicant.(2) An order under subrule (1) does not affect the rights of the claimants as between themselves.
(cf SCR Part 56, rule 11)
(1) If a stakeholder applies for relief by way of interpleader, the court may dismiss the application or give judgment against the applicant unless the court is satisfied that the applicant:(a) claims no interest in the disputed property, except for charges or costs, and(b) is not in collusion with any claimant.(2) If the Sheriff applies for relief by way of interpleader, the court:(a) may require the Sheriff to satisfy the court as to the matters referred to in subrule (1), and(b) if not satisfied on those matters, may dismiss the application.(3) Nothing in this rule affects the power of the court in other cases to dismiss the application or to give judgment against the applicant.
43.10 Order in multiple proceedings
(cf SCR Part 56, rule 12)
(1) If an application for relief by way of interpleader is made, and multiple proceedings are pending in the court for or in respect of any or all of the disputed property, the court may make an order in any two or more of those proceedings.(2) An order under subrule (1) is binding on all of the parties to all of the proceedings in which it is made.
43.11 Trial of questions arising in proceedings for interpleader
(cf SCR Part 56, rule 13)
(1) Subject to any order or direction of the court, the provisions of Part 6 of the Civil Procedure Act 2005 and of this Part, with any necessary modifications, extend to the trial of any question that the court directs to be tried in any proceedings for relief by way of interpleader.(2) The court before which a question is tried as referred to in subrule (1) may make such order, or give such judgment, as the case requires, including an order or judgment finally disposing of all questions arising in the proceedings.